Tag: Binance

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Matrixport Analyst Predicts Rise in Bitcoin ETFs After $4.3 Billion Binance Deal

Investors appear to have remained concerned amid Binance CEO Changpeng Zhao’s $50 million lawsuit settlement and Binance’s $4.3 billion settlement that sent ripples through the cryptocurrency world. In contrast to recent market sentiment, Matrixport analyst Markus Thielen believes this result is a boon for Binance and predicts its continued dominance over the next 2-3 years.

Additionally, Thielen foresees an increase in supported exchanges and sees this deal as a catalyst for the long-awaited approval of a spot Bitcoin ETF in the United States.

Binance deal will raise expectations for Bitcoin ETFs

Markus Thielen of Matrixport emphasizes the regulatory impact of the Binance deal and claims that the cleanup of the industry by US agencies positions Bitcoin as a safe haven asset. Meanwhile, the expected increase in supported exchanges, along with increased scrutiny, sets the stage for the long-awaited approval of a Bitcoin spot ETF.

Notably, Thielen states in a recent interview with CNBC that the deal dramatically increases the likelihood of a Bitcoin spot ETF next year, marking a fundamental shift from unregulated to regulated exchanges in the crypto landscape.

As the industry adapts to a more regulated environment, institutions are expected to take center stage in 2024, with Bitcoin potentially becoming a focal point in investors’ portfolios. Meanwhile, the future, marked by regulatory hurdles and institutional adoption, promises transformative developments in the crypto space.

Also read: Sam Altman returns to OpenAI, what happens now with Microsoft?

Legal turmoil on Binance

According to recent reports, Binance CEO CZ agreed to pay a fine of $50 million, while Binance faces a payment of $4.3 billion. On the contrary, Matrixport analyst Markus Thielen sees this as a favorable outcome, suggesting that with CZ’s resignation and the smaller-than-feared fine of around $10 billion. Furthermore, he predicts that Binance is poised to maintain its status as one of the top three cryptocurrency exchanges in the near future.

The settlement, which addresses money laundering violations and other charges totaling $898 million, includes agreements with FinCEN, OFAC and CFTC, of which $1.8 billion will go to these agencies. Although CZ is banned from operating a business for three years, the possibility of a “clean” return to Binance remains open.
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Top cryptocurrency exchange Binance to end Visa debit card program in Europe

The world’s leading cryptocurrency exchange by trading volume says Binance Card services will stop working in the European Economic Area (EEA) in December.

Binance notes that customer accounts will not be affected. The exchange encourages European customers to transition to Binance Pay, the company’s crypto payments technology.

Binance first launched the card in Europe in September 2020, allowing its customers to use the crypto assets in their exchange accounts to spend and transact at over 60 million locations worldwide.

The exchange did not provide a reason for the card’s closure, although the company has faced a number of regulatory issues in jurisdictions around the world this year.

Binance announced its exit from the Canadian market in May, citing new stablecoin regulations and limits on investors that the exchange said made doing business in the country “unsustainable.”

In June, the US Securities and Exchange Commission (SEC) sued Binance, the company’s CEO Changpeng Zhao, and Binance.US, alleging that the companies were violating securities laws.

In August, a Mastercard spokesperson told Reuters that the payments giant was ending its partnership with Binance.

In September, Binance said it would sell its entire Russian business to local cryptocurrency exchange CommEX, claiming that operating in the country no longer seemed compatible with the company’s business model. No specific details were provided.

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Binance Crypto Exchange Reveals Fears Ahead of MiCA Regulation

Binance may be about to withdraw all stablecoin offerings from its crypto exchange platform for European investors. The news sparked fears about the potential losses the EU crypto market could suffer if Binance validated and followed through with the motion.

Binance will remove all stablecoin offerings in Europe

A prominent executive at Binance, one of the world’s largest crypto exchanges, has revealed a new development that has shaken the crypto community. Marina Parthuisot, head of legal at Binance France, revealed in an online public hearing organized by the EBA that Binance fears it will have to withdraw the majority of its stablecoin offerings for the European market by June 2024.

Parthuisot revealed that the decision was taken to comply with the regulatory restriction that will soon be enacted in Europe by Crypto Asset Markets (MiCA). He stated that European markets could be affected by the loss of stablecoin offerings, which represents a considerable disadvantage for investors when transacting in cryptocurrencies.

“Our goal is to close all stablecoins in Europe on June 30th. This could have a significant impact on the European market compared to the rest of the world,” said Parthuisot.

MiCA, a European regulatory framework and banking authority, implemented a law that would subject stablecoin issuers to strict licensing and compliance regulations.

Elizabeth Noble, MiCA team leader at the European Banking Authority (EBA), stated that the regulatory system has not introduced additional requirements or restrictions on stablecoin offerings in the EU. However, the initial law will be enacted next year.

“There is no transition agreement for these types of tokens [stablecoins]. The rules will apply from the end of June next year,” Noble said.

Regulatory crackdown on cryptocurrency exchange Binance

Binance has been facing several regulatory hurdles since this year. The cryptocurrency exchange was sued by the United States Securities and Exchange Commission (SEC), which filed more than a dozen charges for allegedly misleading investors and operating an unregistered exchange.

In addition to US SEC limitations, Binance has also exited several countries due to regulatory issues.

The cryptocurrency exchange has delisted a significant number of cryptocurrencies from its exchange platform over the years, including major cryptocurrency trading pairs as well as altcoins like Tron, Helium, and others.

As the cryptocurrency industry continues to evolve, regulatory compliance plays a vital role in shaping the cryptocurrency industry and Binance’s proactive response to MiCA regulations is a demonstration of its commitment to maintaining a secure and sustainable crypto ecosystem.

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Worldcoin (WLD) could face UK regulatory investigations

The Information Commissioner’s Office (ICO), a body that focuses on data protection in the United Kingdom, has revealed that it plans to investigate the Worldcoin project, according to a Reuters report on July 25.

Worldcoin, launched on Monday, July 24th, has faced criticism mainly due to its iris scanning feature.

The project offers WLD coins to people who scan their irises. As stated on their website, the new orbs will be available in over 35 cities in over 20 countries, with London among one of those cities.

“We take note of the launch of WorldCoin in the UK and will be carrying out further investigations,” the Information Commissioner’s Office said.

Meanwhile, Worldcoin’s native WLD token, which is listed on several cryptocurrency exchanges including Binance, Huobi and OKX, will not be available to US residents or US residents or incorporated companies, nor will they be able to access them, meaning that the token is not listed on Coinbase.

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Binance will help the South Korean city of Busan increase

cryptocurrency adoption and develop a blockchain ecosystem
Binance is helping the South Korean city of Busan “increase cryptocurrency adoption in and out of the city”. The global cryptocurrency exchange will also support the development of the city’s blockchain ecosystem and the Busan Digital Asset Exchange.

Binance Signs Memorandum of Understanding with the City of Busan

Cryptocurrency exchange Binance announced on Friday that it has signed a Memorandum of Understanding (MOU) with the metropolitan city of Busan. Busan, located at the southeastern tip of the Korean Peninsula, is the second largest city in South Korea, with approximately 3.4 million inhabitants.

“As part of the agreement, the City of Busan will receive technological and infrastructure support from Binance for the development of the city’s blockchain ecosystem and the promotion of the Busan Digital Asset Exchange,” Binance explained.

“Another form of cooperation between the two parties will be the sharing of the order book”, added the company, adding that it will establish a presence in Busan by the end of the year.

Binance CEO Changpeng Zhao (CZ) said, “We are happy to work with the City of Busan to bring about tangible blockchain-related developments that benefit and support the city’s innovation efforts.” The executive opined:

Through our industry-leading position and technology expertise, combined with the City of Busan's strong support of the blockchain industry, we hope to help increase cryptocurrency adoption in the city and beyond.

“We look forward to our close cooperation with the city to support the establishment of digital asset exchanges and various blockchain industries,” added Zhao.

Busan Mayor Heong-Joon Park commented:

With this agreement, we are one step closer to establishing the Busan Digital Asset Exchange as an integrated global platform for digital assets.

“By making Busan a specialist blockchain city that attracts global attention, we will fuel a new growth engine for the local economy and make it a global digital financial hub,” he added.